JULY 16, 2008 Manulife to Buy Mellon Bank Center in LA Manulife Financial has signed a letter of intent to buy Mellon Bank Center in Los 3 Va. Offices Leased to Navy for Sale Angeles from funds operated by BlackRock Realty Advisors and Tishman Speyer for 3 Fund to Buy Austin Office Park about $308 million. The 701,000-square-foot building, at 400 South Hope Street, is nearly fully 3 Value-Added Fund Eyes ‘Core’ Deals occupied. At the $440/sf price tag, Manulife’s initial annual yield would be about 5%. The yield could rise to 6.5% if two below-market leases are replaced when they 4 GI Now in Line for LA Data Center expire in 2010 and 2012. 6 Kentucky Endowment Eyes Funds If it completes the acquisition, Toronto-based Manulife will assume a $171.5 million mortgage with a 5.32% coupon. The interest-only loan matures in 2012. 6 Harrison Street Fund Oversubscribed Cushman & Wakefield is advising the sellers — the core-plus BlackRock 6 Arden Shops Suburban LA Offices Diamond Property Fund and the value-added Tishman Real Estate Venture 6. At one point, there was talk in the market that the open-end BlackRock fund was 8 Calif. Apartment Complex on Block See MANULIFE on Page 9 8 REIT Shows Jacksonville Apartments Shops Big Houston Complex 8 Shopping Center Listed Near Morgan Stanley Real Estate is selectively shopping the massive Greenway Plaza 8 Trammell Offers Houston Apartments office complex in Houston for more than $800 million, the latest in a series of offer- ings following its takeover of Crescent Real Estate Equities last year. Working via broker Holliday Fenoglio Fowler, Morgan Stanley is talking to a handful of investors about the 4.3 million-square-foot property. The company appears to be seeking some $190/sf, or $826 million, which would be in line with THE GRAPEVINE recent sales of Class-A office properties in Houston. Morgan Stanley inherited Greenway Plaza last year via its $6.5 billion Crescent Apartment investor Empire American takeover. It intended to transfer the REIT’s office buildings and residential devel- Holdings is looking to hire a chief invest- opments to a planned $10 billion vehicle, Morgan Stanley Real Estate Fund 7 ment officer in preparation of launching Global. But property values subsequently fell, scuttling the plan and leaving its first real estate fund. The executive will Morgan Stanley stuck with the portfolio in a declining market. oversee fund raising and manage the Since then, Morgan Stanley has been seeking to whittle down its exposure. It vehicle. The Montvale, N.J., firm, headed has sold $285 million of Crescent office properties and has firm agreements to sell by Ezra Beyman, hopes to raise up to $1 See HOUSTON on Page 10 billion of equity. The fund will target dis- tressed and value-added properties across the nation. The return goal has not yet Guggenheim Mulls Step to Bolster Debt Fund been determined. Guggenheim Partners is thinking about amassing reserve capital as a backstop in case debt held by a $768 million fund that it operates fall in value. Mike Kelly has left Dividend Capital Total The maneuver would give Guggenheim the flexibility to pump additional equi- Realty to launch his own firm. ty into existing investments, rather than risk being forced to sell them at a dis- The Denver shop, Tralee Capital Partners, count. Guggenheim might also use some of the capital for new investments — will invest in distressed properties and specifically to buy loans from troubled lenders. debt, as well as recapitalizations. The Under the plan, Guggenheim would raise about $150 million of fresh capital company is backed by two unidentified from investors in its Guggenheim Structured Real Estate Fund 2. The new equity families. Kelly spent the past two years as would be placed in a “co-investment” fund. One of Fund 2’s investors, San chief acquisition officer for Dividend Bernardino County Employees, has agreed to commit $25 million if Guggenheim Capital, a Denver REIT with a $2 billion decides to proceed. New York-based Guggenheim declined to comment on the co- portfolio of property and debt invest- investment vehicle. ments. Senior vice president Greg Moran Fund 2, which closed in 2006, is fully invested in B-notes, mezzanine loans and See GRAPEVINE on Back Page See GUGGENHEIM on Page 8 July 16, 2008 Real Estate ALERT 2

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Va. Offices Leased to Navy for Sale 65% stake in the property. Its partner, fund operator Blackstone Group, acquired the remaining interest in 2006 via A partnership is shopping a 95% stake in a suburban its takeover of CarrAmerica, the Washington REIT that devel- Washington office building that is fully leased to the U.S. Navy. oped the property. The stake in the 319,000-square-foot One Liberty Center, in The transaction is the largest in Austin this year. The last Arlington, Va., could attract bids of about $131 million. That comparable sale came last November, when CB Richard Ellis would value the building at roughly $138 million, or $433/sf. Investors, acting on behalf of a Middle East client, paid $150 At that price, the buyer’s initial annual yield would be 6.5%. million for the 640,000-sf Amber Oaks Corporate Center. Holliday Fenoglio Fowler has the listing. The 13-building Riata complex, which sits on a 95-acre site, The partnership tested the waters earlier this year, when is almost fully leased. Seven tenants occupy most of the space, Holliday reached out to a small cadre of investors. The price including Apple (402,000 sf), Affiliated Computer Services expectation then was about $10 million higher — translating (210,000 sf) and Janus Capital (92,000 sf). Remaining lease into a 6% cap rate. But interest was soft, and the partnership terms average five years. decided to have Holliday conduct a broader marketing effort. The property was developed in two sections, called Riata The brokerage declined to comment. Corporate Park and Riata Crossing, from 1998 to 2000. O The property has an assumable $80 million loan, with a 5.1% coupon, that matures in 2015. Value-Added Fund Eyes ‘Core’ Deals The seller — a partnership among Shooshan Co. and Fred Schnider Co., each of Arlington, and Clark Enterprises of With lenders wary of financing unstabilized real estate, Bethesda, Md. — developed the 13-story property in 2005. value-added apartment player TGM Associates is pursuing The federal government has since completed $17.3 million of properties that appear to be core plays but have upside poten- tenant improvements, including structural improvements and tial. an enhanced security system. TGM this month bought two Connecticut properties with The Office of Naval Research leases 311,000 sf until 2012 at high occupancy rates that each attracted more than a dozen $36.25/sf. It has a five-year renewal option at $43.77/sf. Most of bids, mostly from core institutional investors. the remaining space is leased by Navy Federal Credit Union until The New York firm bought the 303-unit Waterford 2012. There is also a store leased to a deli and a 569-car garage. Commons in Manchester from BlackRock Realty Advisors for The property, at 875 Randolph Street, is in the Liberty $42.7 million, or $141,000/unit. It also acquired the 160-unit Center office and residential development in the Ballston sec- Archstone Bedford in Stamford from a Tishman Speyer part- tion of Arlington, about four miles west of Washington. nership for $54 million, or $338,000/unit. TGM made the pur- The 18.8 million-sf Rosslyn-Ballston corridor was 92.2% chases via its $399 million TGM Multifamily Fund, which occupied at the end of the first quarter, according to Grubb & seeks a 14% return. Ellis. Class-A asking rents average $39.85/sf. The market had The Class-A properties appealed to TGM because they are 672,000 sf of net absorption in the first quarter. O in supply-constrained markets, paving the way for rent increases. What’s more, because TGM manages properties Fund to Buy Austin Office Park itself and oversees upgrades and renovation work, it expects to squeeze larger-than-average profits out of properties classified Fund operator Spear Street Capital has agreed to pay about as core plays. $220 million for a large office park in Austin, . The strategy, which has been part of TGM’s playbook for The firm is buying the 1 million-square-foot Riata office years, has particular appeal in today’s tight lending environ- complex and two tracts of developable land. - ment. Lenders are now much quicker to approve loans on sta- based Spear Street is acting via its second opportunity fund, bilized properties than on value-added properties, which usu- which has $325 million of equity. ally have high vacancy levels or need upgrades. Holliday Fenoglio Fowler is brokering the deal for a joint Boston-based Beacon Capital Partners may be best known venture led by New York State Teachers. The , for using the strategy, for offices that appear at first blush to be which is advised by J.P. Morgan Asset Management, owns a core plays. At the same time TGM was pursuing the Connecticut prop- erties, it completed a more-typical acquisition of a Class-B, value-added apartment complex in Laguna Hills, Calif. It Still Receiving Real Estate Alert the Slow Way? bought the 360-unit Pardo at Laguna Hills from RREEF for $77 You can switch to e-mail delivery and get the lowdown on the property market the moment it’s published, million, or $214,000/unit. each Wednesday. The subscription price is the same for TGM, which typically uses 65% leverage, owns and man- delivery by e-mail or snail-mail. Switch to e-mail delivery ages about 15,000 units nationwide. Its fund is now two-thirds by calling 201-659-1700. invested, and market players expect fund raising for a succes- sor vehicle to begin as soon as yearend. O July 16, 2008 Real Estate ALERT 4

GI Now in Line for LA Data Center Wells’ master lease on the property includes an option to match the top bid, but the bank isn’t expected to exercise the Fund operator GI Partners has emerged as the apparent win- option. The bank’s triple-net lease runs until 2019 and can be ner of the leasehold interest in a large data center in Los extended until 2039. Wells subleases the space to a variety of Angeles after a deal with another buyer fell through. tenants. GI bid about $165 million for the 725,000-square-foot Wells also owns the land under the building, which is at Garland Building, which is fully leased to Wells Fargo, and an 1200 West Seventh Street. The ground lease carries generous adjacent parcel suitable for the development of up to 220,000 terms. There is no rent until 2014, when a 50-year extension sf. That price would bring an initial annual yield of about 8%. option kicks in at just $10,000 a year. The seller, Trumbull & Associates, turned to a handful of GI, of Menlo Park, Calif., is headed by Rick Magnuson. It is back-up bidders after New York-based Metropolitan Real expected to make the purchase via its third fund, which is Estate Investors backed out of plans to buy the property. In seeking to raise $2.5 billion to invest in real estate and other addition to GI, the other bidders included Heitman of Chicago, asset classes. The fund follows up a $1.45 billion vehi- Houston developer and fund operator Hines and local players cle that closed in 2006 and a $526 million joint venture, oper- Jamison Properties and J.H. Snyder. Grubb & Ellis is advising ated by GI, that was formed in 2001 by Calpers and clients of Trumbull. CB Richard Ellis Investors to buy data centers and other Trumbull, which is managed by a unit of UBS, must obtain Internet-related real estate following the dot-com collapse. the approval of two-thirds of its 270 limited partners before a After the properties were stabilized, the joint venture cashed deal can be finalized. That red tape apparently contributed to out in 2005 by taking the portfolio public via a REIT called Metropolitan’s decision to pull out. Digital Realty. O

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Kentucky Endowment Eyes Funds the sidecar. That was the first specific commitment to the sidecar. It was made with the understanding that Harrison The University of Kentucky’s endowment is paving the way Street would have discretion over investments. Other for its first commitments to high-yield real estate funds. investors in Partners 2 have indicated they would also com- The $950 million-asset endowment has increased its real mit equity to the sidecar fund, but would maintain discre- estate allocation to 12%, from the current 5%. The allocation tion over investments. calls for 4% of assets to be invested in value-added funds and Harrison Street was formed in 2005 by former Heitman 4% in opportunity funds. Kentucky’s core allocation, invested managing director Christopher , former Motorola chief with open-end funds managed by RREEF and UBS Realty executive Chris Galvin and his brother, Michael Galvin, who Investors, will shrink to 4% from 5% as the endowment’s asset headed firm Galvin Enterprises. Harrison base increases. Street’s debut fund closed in May 2007 with $208.5 million The endowment hired R.V. Kuhns & Associates of Portland, of equity. Ore., as its general consultant to assist with the selection of Partners 2 will rank among the largest niche funds. fund managers. It will request proposals from fund operators Prudential is raising $500 million for its fourth senior-hous- in September and decide on allocations in December, said ing fund, following up a $370 million vehicle raised in 2006. Susan Krauss, assistant treasurer and a member of the endow- Most other niche vehicles have raised $250 million of equity ment’s investment committee. or less. O The endowment has not set any restrictions on investments outside of the U.S. or in high-yield-debt funds. One strategy Arden Shops Suburban LA Offices the endowment is considering is to invest in a domestic value- added fund and a global opportunity fund. O Arden Realty has set a $58.5 million asking price for a well-occupied office building north of Los Angeles. Harrison Street Fund Oversubscribed The offering consists of a 213,000-square-foot property in Valencia and an adjacent parcel suitable for the development Harrison Street Real Estate Capital’s second opportunistic of a 250,000-sf building and a garage. CB Richard Ellis has niche fund is oversubscribed. the listing. The Chicago player will have to scale back some commit- At the asking price of $275/sf, the initial annual yield ments from 30-plus investors to close the fund this month at would be 5.9%. A buyer could increase the return to about its $400 million ceiling, market players said. The vehicle, 6.7% by 2010 by raising rents as below-market leases expire. Harrison Street Real Estate Partners 2, is among the largest The four-story building, called Tourney Pointe, was con- funds to date investing exclusively in niche property types. structed in 1985, but was extensively damaged by an earth- Harrison Street began its marketing campaign at the quake in 1994. Los Angeles-based Arden, now a subsidiary beginning of this year with a $300 million equity target. The of GE Real Estate, stripped the building to its steel frame in fund operator will kick in $20 million of the total equity. 1996 as part of a redevelopment to bring it into compliance Harrison Street seeks an 18-20% return by buying or with post-earthquake building codes. The building, at 27200 developing medical offices, senior and student housing, Tourney Road, reopened in 1998. market-rate assisted-living facilities and self-storage facili- The occupancy rate is 94%. Rents average $27.50/sf, and ties, often with joint-venture partners. Up to 10% of the asking rents are $32/sf. The lead tenant, film restoration fund’s equity can be invested in Canada and Mexico. company Cinetech, leases 37,000 sf until next year. Other With leverage, its second fund would have $1.6 billion of tenants include Mercury (35,000 sf until 2013), buying power. Investors said the vehicle is already about Centex Homes (30,000 sf until 2013), Act Litigation (29,000 sf 30% invested. until 2011) and Vericomm (10,000 sf until 2013). Harrison Street also has the option of establishing a side- Valencia is in the Central Valley submarket, one of four car fund. Sidecars enable a sponsor to make investments in Santa Clarita Valley. The submarket was 92.3% occupied that otherwise might cause the main fund to exceed agreed- at the end of the first quarter, according to Grubb & Ellis, upon parameters. For example, the Partners 2 fund may with no construction under way. Asking rents averaged limit the percentage of equity that can be invested in self- $34.08/sf. storage facilities. To complete a large self-storage acquisi- GE has actively reshaped Arden’s portfolio since acquir- tion, Harrison Street could use some of the sidecar’s equity. ing the company in 2006 for $4.8 billion. It has sold more The exact size of the sidecar hasn’t been established, but than half of Arden’s 97 original properties, which were con- it would probably be less than $200 million, given the size of centrated in Southern , to multiple buyers for Partners 2. That amount of additional capital would increase more than $2 billion. It has also acquired more than $2 bil- Harrison Street’s buying power to $2.4 billion. lion of properties. The $7 billion-asset Arizona Public Safety Personnel last For more information on Tourney Pointe, call CB’s Tom month committed $80 million to the fund and $45 million to Bohlinger, at 213-613-3452. O July 16, 2008 Real Estate ALERT 7 profit From Fresh Intelligence On Deals & Dealmakers

ee for yourself how S ontin- r c secto as the t year rket ker las ma bro ing 33% y, fol- e hotel hopp ctivit REAL ESTATE ALERT tiv it a w n of a hree- t-ac g t t - he mos givin $4 billio almos se, wtinas t sales, with dled ataba Eastdil Winsedon Hotel Rankinghotel oasnd, Saless han Soar D es r c n of g sec e firm s Deal Pag Eastdil Securcto t billio stron thre als on sege. r$5.3ke ed a The p de ohseur reda l- finish n. t of to ued st t roke m fo billio to Real Estated l isAlert’ eady 2007 r a tdil b 3% ardty ,Elliott- at $2.4 rding g an alr Y 14, ea Eas g 3 ivi ree , acco rankin firm g AR t y Hodgesin a cWt th e, year (see The s strin guarantees your edge las are.pp of ost as last more tables. astdil’ d sh o b r E an FEBRU ker wh byonJoneslm Langge tLaSalle,salesa es n o ague . But ticle ro a wedilli d a larDa agmillio ar’s le oEastdilkers eWinsar Hotel Ranking as Sales Soar OP INDUSTRIAL BROKERS IN 2006l b it lo 4 b s olefFEBRUARYall al ofn$25P 14, 2007 t ye er br on (se 6 T ote ng $ arternd De s o in las t w o h ivi ithqu ha s salesal dy urth ping-cen d Ellis ear, t ive , g w ms tracks de ea s fo hop Eastdil Securedt wyas the most-active hotel broker last year as the sector contin- OP INDUSTRIAL DEALSct IN 2006 es d, irwhich o6p TOP INDUSTRIALlrtdil’ g BROKERSnd s IN 2006CB Richar las age 8 6 T t-a al on e f f t s Eaas rin all a y 32% on P os l s ec re t o y wairm st md g, which uede dto bsurge. TEL TEL BROKERSm IN 2006ote g s th 8-9).lis ictor f f iol’fsfice,an nkin soar See HO OP HO he h on he d v 6 TOPhegs INDUSTRIALotd le DEALSra IN 2006 ns, Eastdil brokered $5.3 billion of hotel sales, giving it a whopping 33% market 8 T s t of str . T Real Estatean The Alert’ .nkinT as tuicstrial sactio by tipping you off to the a on a oners to ing theleras t E indar tran share. Hodges Ward Elliott finished a strong second, with $4 billion of activity, fol- w TEL DEALSi IN 2006d li u the to d ed ill he il ing nk won tab nBin see , kere 9 TOP HO b is .4 b rd ra e rokr8es. TOP HOTEL( 6-7). BROKERSearnb rINo 2006 lowed by Jones Lang LaSalle, at $2.4 billion. The three firms handled almost three- 5.3 fin $2 co see guas b ke Poagesn gy u tors $ at ac e ( leaw ro g onw udinast age 8 inves Eastdil Winse. r eHoteld Rankingeen’ar, Fund oasr Salesr’s Soarrnkinb incl l on P quarters of all largevin salesg last year, according to Real Estate Alert’s Deal Database, rg3 Cushmanke d ElliottRecruiting‘Gr Retailye Brokm e ea trae d Ellis9 TOPsales, HOTEL2% DEALSTEL IN 2006 ed in Newd ,Englandgi Eastdils uSecurro ar st or entur y cen otel 3 which tracksglan sales of o$25p. million or more (see ranking and list of top deals on Pages to l b la on V ast g- H by wEn swo shop- ed tdi Developer Raisingles ilksli Retail n l in d See HO nNe ne fell g 10 u as 3 sa m i kpp CB Richar 3areCushman Recruiting Retail Brokerss rketi8-9). in o etin and E Hodges W ge 25 rth sho h so ortfoliosor Offerema rkets mark od e. Jones Langlar LaSalle,f $ ou d hic s, est itth rma The victorys., is was Eastdil’sapeC fourthut in last year’s league tables. The firm already latest wheelings and ar y Goldmanll Fundo Bac . Officess f onan Blocw on nv aveh supe Mas ea,C t abo h b 3 a s l’ , i 3 Developer Raising ‘Green’i Fund f e, ar a s ed of ale di all ng ct olgiosh te-rs o inwontre the rankingsitan of office,lued mall and shopping-center brokers. But Eastdil’s string 2007 w rs s s ast m ki sa portvfin . clusop n Bra opol is va . lo rte ck E ce, kagean Listed ran 2 Big Retailtail Pgi oppup sh d i metr tfolio e s CB Richard Ellis ua t4raRepositionedas Califffiali Pacl r mt 3 Goldmanrgere Fundd ,Backsscooo Retail10 Venturend stonwas brokenpor in the aindustrialpackag ranking,ter which won (see article and q h w f o ria red ola lan to sw gt firmd basea teBo oot as g cen Y 14, hic ry o ust ke Tw uningties ell pmtienn o ftouh uarare-fnking one rPagesties 6-7).ppin AR w cthigano gIndustrs d ro portE e f eloke eioCnsoab n-sq prop 26 sho The 1.9 4 Micvi kin in nb edr4e oRepositioned pine wNewoan dev Calif.Englandar Officeseapct ona tBlockmillio g theHotel sales,ted including unbrokered transactions, soared by 32% last year, to 8-9). he an the 7). u ra N in muentsC d 2.5 ppin lis initial T r n 6- ng x Available Flatleyin tCo.,s , aisffl ea, uThee . rhso ss., has yer’s FEBRU theHoteln Syndicatori es todi Expand Platfor et ke rs sisn. ar shirve.al age niste s a Jones Lang LaSalle.he bu lio or See HOTEL on Page 8 n5 ke ag clu ark4 Michiganarente a Industrialanmp Packageis cakk efieldListedce land, M with ice, t ortfo dealings in the commercial- TOP INDUSTRIAL BROKERS IN 2006 wo ro P in m inrmg c e, Mewl iHta io pa g ck area t pr e p b n p l n Ro tir 6 ers s oArea sOffice, Comple he pe tre po fo a pi of The 1.9ialton At tha en wa Bayng ale t t su uitnhern rNo Cushmanort as & Wop Bitos n. n the ts OP INDUSTRIAL DEALS IN 2006 5ki l s ial Ranking hi of 5soraHotel eSyndicatort n.p itoes Expandsh Platformin thes in or millio bid o resen T TEL BROKERS IN 2006 ran te Industr ortfoliosabsve Offerrs n B m ot , Tretdeschi26 Realtyrkets er’ t $440io 2 Bigcan Retail Portfoliosrep ilOffered in New England 6 Ho ops ha ste d i $500ton millio-fo hilepe d erma uyabouol stors reta 7 CB T os lu se os araenw pro gstseup d bat rtf Inve package p its TOP HO e li p c ba B5 BayMeu Areae Officedin liComplexa Availableluehe po s . The t u age 5 8 TEL DEALS IN 2006 ur Apartments Up fortfo Gr u e sq thstan as is v , t e 6.25%. nt Two largera tretaile portfoliosbuil haveon hit P the market in New England, giving investors een’ Fund nt or p irm th n- gree , h folio ice thliry se l ncy hich AIL OP HO ‘Gr Ve Atlanta l p oo t f of lio andi nf s. ort Jonesp Langre ro LaSalle.ugen re rareai u popportunitiesa , w to scoop up clusters of supermarkets in one fell swoop. T k 10 VEHICLEStai sc en ns il 7 CBpp Topsn-sa sIndustrialf p ith Rankingat e rep ereotcc Flatley See RET 9 re to m io 5 m sho , M w othuld b thlios. e veragts gs. ge ies lop ct 2. is milliod rea At onrtfo ag a i ageldinFlatley 5 Co., a development firm based in Braintree, Mass., is marketing 10 shop- property market. Cushman Recruiting Retailks BrokRetail INVESTMENTar it e se e lan uala yield. w b-pd o a 96%ck up ail ho v t 3 102 Bigo lRetailun Pe nt Th ck annon ionee subi has pa ilt’s re on Pping centers in affluent sections of the Boston metropolitan area, Cape Cod and w rt a d ue e. efield 10o Atlantast Apartmentsitllhr n Upolio for Grabse firmu AIL T po ffl hir ak f R Bo ny omf ca ortf Th theh b Developer Raising . Offices on Bloc m op a ps o e a 40 rs s p e.s of ic southern New Hampshire. The 2.5 million-square-footd fund portfolio is valued at about 3 kage Listed re in m th $4 Flasttley’o uaratter wh See RET t ra ers Ha s in10 uINVESTMENTt ve VEHICLESee-q y r y, $500 million. Cushman & Wvalakefieldue-addeis shoppinglates the properties as a package. Goldman Fund Bac Flatleyn Co.,t w et bo . In t thr nc tle nd n in the 3 ial Pac ce Ne ark t a % abou pa la fu millio ts, ng n Cushman & willWm sella .25 cu s. F Medeanwhile,est $300Tedeschi Realtytmen of Rockland, Mass., has listed 26 shopping centers ailable pi er n. Tedeschiouper Realtyedgs it6 oc g d lat a inves lti- Repositioned Calif v uth llio e, up alu ly e din ops Plan-andad freestandingforrae ise Apartment supermarketst inFund the Bostonmu area with Jones Lang LaSalle. The 1.9 4 x A THE GRAPEVINEso hil g s asbvuildingh rag ol uens toth partmen d two n higan Industr Blackstonew in o-aGr reo i rou ve il h apl la in a ti- rate ff i Mic s$500like miean nd oli opertiese s. a ta ndv tmillion-sfs, h-yield portfolioul t. is valueds op eat about $440spino million. At that price, the buyer’s initial 4 look Mnd Chicagsta rtf d b lioe 6% re cancelelio egnhig marke in al er the pri- FREE It on a ree po ul kf.To h a 9 ’s ff has il indintm annualnd yieldom fwouldf princip be roughlyaf t6.25%. tInvestorsurn, can bid on the entire portfolio or abs ost f Equitysf Officeo Prulrt s THEir mGRAPEVINEING Spinoffino Drmof f es e fu tw no i- ehicle re Hotel Syndicator to Expand Platfor the B ndith n- daniw nb-po ha e f sp cu00lty nv of th ed pwihosepr n v perties 5 ea Office Compleial Ranking tedaw lio rtiehl b cano maxi-th ING diff$i3 t iector arnyartners,t of threee s sub-portfolios.n, ows d a 13-15% pro Ar il athley su it oli ofof An f the a heatn s pe a th urtheirtie gete mily Bay Industr inheri onme,rua thinksee rtf ietsy It looks like Blackstoneo Grsoupe iwillntmt sell o eFlatley’sr unchet portfolioer e tar has a 96%ti-fa average occupancy rate. The package represents 5 -by- n onethr po varter an ecause ainess ar als aftto la r ophav mul ty ops one acksan t of tin’s g a ar urb b weark ap Concert iRealtyp nnel ePd 5% oupldr sed t equi is Bl y argeey qu sub the Boston and nChicago-areaof to ld buildingsd et. nc it, plaic about3-1 three-quarterswy istresit yof the firm’s retailp so holdings.f gFlatley, which built up its retail trialCB T Apartments Up for Gr uzz anby t atl e-n and ent sig ns yo-baseie rk tpIrNi G veh 31fund il or d qu d u udin 7 b fits Fl torew ferinherited with Equityla Office- Propertiesa a ilya m g e g line incl See RETAIL on Page 5 VEHICLES pro ownth a dif ops Planp Chicagig hfor mwhileApartmentse wn ame dFundr-minfa ft in cert ear, mize the d ut took n, led h undsnd ho Mruloti-Fget erfloti so lud Con last y Sign up for a FREE Atlanta for bo tone gto one-by-one,ce ratherng thany ffu in bulk.w t Theei ar pmu up nscaid yers rs a shin n i mil e oncer h utnder rsi pla subscription!10 buye Blacks Wa e it ca indfa th C h t gve d edvestoar, nal Robert k, f c a e INVESTMENT gs. Yor wher buzza sis Blackstonef f ote thinks2005.artners, it canncquirin maxi-h ss linIn ye titutio ons. als— t sellbuildinit New Ore., f h y o torla bylaua ld tre oINGblem.rt Spinoffast ins RobertDruisitopsiat Planincip forties thaApartment Fund 10 gs gy in nd, omf ize uprofitslt e cby targetingrily to a varietyou ofdis a pr ce s lfrom —cq th t’spr oper will trate Portla in fic t s ma d w r not on ern eglisna ies ncer pr age 11 oup s nd sp if ha nenwide.nd o was C milliolay INGndbpa r,tCo o find on P buildin ttle a rtfolios. ebuyersd tfor the downtownantio fu and ginsuburbang ti$100d l p Anins.ga spinoffci n pthasley canceledage 11le t plans to raise a $300 million value-added fund a Sea po ING SpinoffING h gDrtion plna 3 raiisn leassa a closn in parero on Punab re opertiese d big f etekbiuildings.ness s BlackstoneG, ilFy utookndrm a differentof at rs ioinrsbecauset tio of.Apr thep difficultyp ere of findingSee high-yield SPINOFF apartment investments, in the latest o-a lihppe An esso n forConcertit IN Realtym P fo ts to ldafut isi latc’se ind — w k.Tf hicuhis eakuity d t Fa er tmen vesohostit qouokper o f Blackstone Gr ul wca wf eqstrategyeg in-a Newlti- York,rpmmi Washington,uIgnht in eartc signnc ofew weakness tSands in that sector of the fund market. e Chicag maxi- Capital, be nofo o-based lohnil u dcoe no. m neivn CoAndrble See SPINOFF 3-issue trial subscription, THE GRAPEVINElik nb n of e million hirSeattlee w andt M Portland,un Ore.,G—e whereem or itosingeg andy, Chicagna o-based Concert Realty Partners, whose principals operated two multi- nd ni ca y n g s N l lf l ks a Equity Officeha Prit Dunmorba $200 si has d Eder g I ob hecn d b nt e u oo ton h rt ariet ur p to fund,Chicaguflippedntivenc bigr iportfolios.n pBruttlio n re efamilyr funds while at ING, planned to launch their own vehicle after the spinoff in It l os it he v ubise u t ty olypef ra Co souni a il Brgadleya pMutha w B d w at thinksg a ras en ortuni arty i 5. cq ot 0 meen,sin Ap — te ,r ne fetropp tic P fam 00t. Emera est n McSw10 lo e. late 2005. Concert Multi-Family 3 fund would have targeted a 13-15% return, pri- the ne to getin n and diffirs , cra esidene 2 by m W as t $ t c ac y-o ar w a onDemo prlat Dunmoryy fro . e Capital,w whichas iisrs seekingpl to marily by acquiring underperforming or distressed multi-family properties inheri-b lacks y t to ok timegt t a vice rrilil ide ng le a f k ew Sands ne B b wn to e i as primaa wBentleyisi at ld too o is its do e shin uity, m toraiseorns. upra to $200oagef milliono r of equityAndr for its nationwide. rof ton Wa Emerson t eq vesati d ts o h ve buzz p the k, ., wher solici nal in n firstun opportunityen h t fund,ne hasand hired long- Fund raising was not a problem. Investors said Concert lined up soft equity for lacks or re will titutio F itm ug ng and each week you’ll get mize rs B Y O t ins to See GRAPEVINEm on Backno P si Ed ye gs. ew nd, s ts timem Democratice lo Party operative commitments of at least $100 million from institutional players last year, including bu N tla Coa ing r i co — e c ildin in or lios. ek fo EmersonG asth a viceadley president. Muth Emerson ING — enough to hold a first closing and begin acquisitions. bu gy P fo e ity g- IN ut Br te nd ort ss qu n B Robert stra a p ichi f e d lo will soliciteen, equity, primarily from West But the closing never took place. Apparently, Concert’s principals — ttle big h o e Ed Sea d w n hir e n CoastMcSw institutional investors. Bentley McSween, Bradley Muth and Andrew Sands — were unable to find properties that pe has tiv so flip millio era est See GRAPEVINE on Back Page See SPINOFF on Page 11 e Capital, fund, op Emer W $200 ty rty t. m to a fro age the latest word on: Dunmorup tuni P iden y or tic res ril Bentley ise pp cra p s. ra t o vice rima tor irs a y, p ves f Demoas uit in time eq nal t tio Emersonsolici tu See GRAPEVINE on Back P nsti will st i  YES! Start myCoa 3-issue FREE trial subscription to L Market squabbles and REAL ESTATE ALERT. There are no strings attached -- I won’t receive an invoice unless I choose to subscribe. other maneuvers you’re not supposed to NAME:

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Calif. Apartment Complex on Block not part of the offering. About 12,000 people live within a mile of the center. The Fund operator Kennedy Wilson has set a $56.5 million ask- average household income is $102,000. The property is across ing price for an apartment complex in Anaheim, Calif. from Glade Parks, a master-planned community currently The 286-unit property, at 175 South Rio Vista Street, is 95% under construction. It is slated to have 858 residential units occupied. Rents average $1.70/sf, or $1,500. At the and 1 million sf of retail space. $198,0000/unit asking price, the buyer’s initial annual yield For more information on the offering, call Marcus & would be 4.45%. Marcus & Millichap has the listing. Millichap’s Alvin Mansour at 858-362-9353. O The complex, which consists of two two-story buildings, was built in 1969. Kennedy Wilson conducted a multi-million- Trammell Offers Houston Apartments dollar renovation of the unit interiors and common areas after acquiring the property in 2006. The complex includes garages, Trammell Crow is marketing a historic apartment complex two swimming pools, a fitness center and a clubhouse. in downtown Houston that is expected to attract bids of about For more information, call Marcus & Millichap’s Stewart $29 million. Weston at 562-733-4367. O The 244-unit Alexan Lofts, at 2115 Runnels Street, is 90% occupied. Rents average $1.39/sf, or $1,389. The three-build- REIT Shows Jacksonville Apartments ing complex was built between 1880 and 1909 and was reno- vated in 2003. Houston-based Trammell has given the listing Equity Residential is seeking $55 million for adjacent apart- to affiliate CB Richard Ellis. ment properties near Jacksonville. Houston’s rental market has been among the few to stay The Class-B complexes, which encompass 650 units, are strong during this year’s real estate slowdown. Trammell’s being pitched to value-added players. At the $85,000/unit ask- property could be attractive to value-added players looking to ing price, the initial annual yield would be 6%. Bids will be invest in an up-and-coming section of the city. The complex is accepted on one property or both. Jones Lang LaSalle has the on the eastern edge of downtown Houston, just east of listing. Highway 59 and close to Minute Maid Park and a stop for a The offering consists of the 272-unit Mariners Wharf and recently announced rail line on the city’s east side. the 288-unit Bridgewater at Wells Crossing in Orange Park. For more information, call Craig LaFollette of CB at 713- The garden-style properties, at 350-351 Crossing Boulevard, 787-1977. O are about 10 miles south of downtown Jacksonville. Mariners Wharf, which was built in 1989, is 92% occupied. Units aver- Guggenheim ... From Page 1 age 1,100 sf. Rents average $0.74/sf, or $822. Bridgewater, which was built in 1987, is 94% occupied. Rents average $766, the mid-level tranches of commercial-mortgage securitiza- or $0.69/sf. tions and collateralized debt obligations, with a return goal of A buyer should be able to raise rents in either property after 15%. The vehicle has already liquidated 60% of its holdings. upgrading units. Condo conversion could be a long-term exit None of the remaining holdings are at risk of default, accord- strategy. ing to investors. But the value of debt investments have fallen For more information, call Jones Lang’s Jubeen Vaghefi at over the past year because of a reassessment of risk premiums 305-789-6519. O by investors and the rising cost of financing holdings. The co- would also potentially buy loans Shopping Center Listed Near Dallas from lenders under pressure to sell — an option that seemed unlikely when Fund 2 was making its investments in 2006 and A developer is asking $43 million for a newly built shopping early last year. “The market has obviously changed,” said one center in a wealthy suburb of Dallas. investor in Fund 2. “If you had told me a year ago that Bear The offering consists of 208,000 square feet at Shops at Stearns would be out of business now, I wouldn’t have believed Vineyard Village in Euless. The space is almost fully occupied, it.” which makes it suitable for core investors. The asking price The co-investment fund would not be used to supplement translates into an initial annual yield of 6.7%. Marcus & investments made by Guggenheim’s latest fund — Millichap has the listing. Guggenheim Structured Real Estate Fund 3, which completed Developer Burk Collins & Co. of Hurst, Texas, completed the raising $1.25 billion of equity last year and is now about 60% shopping center last year and has leased 98% of the space. The invested. However, there’s talk that Fund 3 could invest along- 4,000 sf of vacant space will likely be filled by the time the side Fund 2’s co-investment fund in the purchase of loans. property trades hands. Funds 2 and 3 share many investors. The larger tenants are Bed Bath & Beyond, Ross, PetSmart, Besides the San Bernardino system, other investors in Fund Shoe Pavilion, Staples and Marshalls. There are also three 2 include Calpers, Los Angeles City Employees, Missouri Public restaurants and a bank that are on ground leases. And there is School Employees, New Jersey State Investment, Oregon Public a Lowe’s and a LA Fitness gym that are separately owned and Employees and Wisconsin Investment. O July 16, 2008 Real Estate ALERT 9

term are Mellon Financial (107,000 sf at $26.41/sf until 2012) Manulife ... From Page 1 and McKinsey & Co. (83,000 sf at $12/sf until 2010). New leas- thinking about buying out the 33% stake held by the $1.1 bil- es could currently command about $38/sf. Mellon is viewed as lion Tishman fund. But the two partners ultimately agreed to certain to renew. McKinsey, which subleases a portion of its sell the building outright. space, is expected to partially renew. The funds acquired the property in 2005 for $245.6 million The 26-story building, which was constructed in 1982, from the retirement plan of the main tenant, law firm includes a five-level garage for 862 cars. The property is on the O’Melveny & Myers, which is leasing 348,000 sf until 2015 at southeast corner of South Hope and Fourth Streets in the $19/sf. One other major tenant has a long-term lease: Capital Bunker Hill district, a short walk from the financial district. Group (111,000 sf until 2018 at $22.94/sf). Manulife, the world’s fourth-largest insurer, has a $4.7 bil- The two large tenants with leases that roll over in the near lion property portfolio in the U.S., Canada and Japan. O

CALENDAR

Main Events Dates Event Location Sponsor Information Oct. 6-8 Expo Real 2008 Munich Messe Munchen www.exporeal.net Oct. 27-30 ULI Fall Meeting Miami ULI www.uli.org Nov. 19-21 NAREIT Annual Convention San Diego NAREIT www.nareit.com Jan. 21-23, 2009 Winter Forum on Real Estate Opp. & Private Fund Inv. Laguna Beach, Calif. IMN www.imn.org March 25-26 PREA Spring Conference Washington PREA www.prea.org May 17-20 ICSC Spring Convention Las Vegas ICSC www.icsc.org Nov. 3-6 ULI Fall Meeting San Francisco ULI www.uli.org Nov. 11-13 NAREIT Annual Convention Phoenix NAREIT www.nareit.com

Events in US Dates Event Location Sponsor Information Sept. 7-8 Private Equity Summit Scottsdale, Ariz. Opal www.opalgroup.net Sept. 8-9 Real Estate M&A, Private Equity & REIT Privatization New York IMN www.imn.org Sept. 9-11 Cityscape USA New York IIR www.iirme.com Sept. 10-12 Western Division Conference San Diego ICSC www.icsc.org Sept. 15-16 Distressed Retail & Shopping Center Symposium Chicago IMN www.imn.org Sept. 15-17 Dealmakers Summit Half Moon Bay, Calif. IREI www.irei.com Sept. 16-18 Real Estate Investment World Latin America Coral Gables, Fla. Terrapinn www.terrapinn.com Sept. 21-23 Guns & Hoses 2008 Huntington Beach, Calif. IIR www.iirusa.com Sept. 22-23 Alternative Investments Summit Phoenix IMN www.imn.org Sept. 22-24 Key Issues in Private Equity Real Estate New York Tonkin www.tonkincorporation.com

Events Outside US Dates Event Location Sponsor Information Aug. 19 Brazilian Real Estate Finance & Securitization Sao Paulo, Brazil IMN www.imn.org Sept. 9 Real Estate Finance in Latin America Mexico City Latin Finance www.latinfinance.com Sept. 9-11 Real Estate Investment World Global Opportunities London Terrapinn www.terrapinn.com Sept. 15-16 Current Trends for REITs Kuala Lumpur ABF www.abf-asia.com Sept. 25-26 Vietnam Real Estate Investment Ho Chi Minh City ABF www.abf-asia.com Oct. 15 Tax Issues in Real Estate Transactions in CEE Warsaw Intl. Tax Review www.internationaltaxreview.com Oct. 15-17 International Hotel Conference Rome Lodging Unlimited internationalhotelconference.com Oct. 27-29 European Alternative & Institutional Investing Summit Monte Carlo Opal www.opalgroup.net Oct. 29-30 European Real Estate Opportunity & Private Fund Inv. London IMN www.imn.org Nov. 17-20 Investing in Infrastructure Assets Europe London Terrapinn www.terrapinn.com To view the complete conference calendar, visit The Marketplace section of REAlert.com July 16, 2008 Real Estate ALERT 10

Houston ... From Page 1 Corrections roughly another $420 million. A number of other properties, A July 9 article, “BofA Seeks Campus Sale-Leaseback,” under- including Greenway Plaza, are on the block. Morgan Stanley stated the projected capitalization rate for an office campus in took a $150 million writedown on its Crescent investment in Concord, Calif., that Bank of America is now shopping. At an the second quarter. estimated sale price of $200 million, the cap rate would be Some market players said the Greenway Plaza offering about 6%, not 4%. might face tough sledding, given the market downturn and investors’ reluctance to take on large purchases. A July 9 list of large second-quarter property transactions mis- The 10-building complex is 92% leased, better than the 86% stated the seller of the RadioShack headquarters in Fort Worth, average in the Greenway submarket. There are more than 200 Texas. The seller was KanAm Grund, not WestWind Capital tenants, including AIM Investments, Occidental Petroleum and Partners. WestWind advised KanAm when KanAm bought the Parker Drilling. Rents range from $15/sf to $21/sf. Asking rents property in 2005. O in the submarket average $23.48/sf. The mix of Class-A and -B buildings, constructed between 1969 and 1982, are part of a 65-acre mixed-use development NEW DEALS that includes a hotel and residences, which aren’t part of the offering. The complex is on Richmond Avenue, about five Maryland Office Park miles southwest of downtown. Crescent acquired the property in 1996 for $206 million Wells Real Estate Funds agreed to pay about $95 million for from a joint venture between Northwestern Mutual Life and the 315,000-square-foot first phase of West Quest Technology Kemper Realty. Park, at 1580-A and 1580-B West Nursery Road in Linthicum, Greenway Plaza is one of several Houston properties that Md. The $300/sf price tag translates into an initial annual yield Morgan Stanley is shopping from Crescent’s portfolio. Still up of about 6.7%. Atlanta-based Wells is apparently assuming about for grabs are two trophies owned in partnership with J.P. $20 million of debt. The two-building complex, which was con- Morgan Asset Management: the 1.3 million-sf Post Oak Central structed in 1992, is fully leased to Northrop Grumman until 2017. (valued at $280 million) and the 502,000-sf One BriarLake The defense contractor has a five-year lease extension option. Plaza ($140 million). HFF also has those listings. Northrop this month announced plans to lease a 160,000-sf Meanwhile, Morgan Stanley, in conjunction with partners building in the complex that is being developed by Opus East and in some cases, has sold or struck sales agreements for a num- is not part of the Wells purchase. Jones Lang LaSalle is handling ber of other Crescent properties. Among the deals: the sale for developer West Group of McLean, Va. Morgan Stanley and GE Pension Trust sold the 567,000-sf Five Post Oak Park in the Houston Galleria submarket to Washington Office Building Shorenstein Properties’ ninth core-plus vehicle in April for about $215/sf, or $122 million. Broker: HFF. Fund shop Guardian Realty Investors agreed to pay about —Morgan Stanley and J.P. Morgan have agreed to sell the $53 million, or $425/sf, for the 125,000-sf Tower Building, at 782,000-sf Miami Center in Miami to Sumitomo Group for 1401 K Street NW in Washington. Guardian, which is based in about $215 million. Broker: Eastdil Secured. North Bethesda, Md., is believed to be buying the property via —USAA Real Estate has agreed to buy the 476,000-sf Datran its third value-added fund. The building is fully leased to 27 Center in Miami and the 93,000-sf Alhambra Plaza West tenants. The cap rate is projected to stabilize at more than in Coral Gables, Fla., for a combined $171 million. Broker: 6.5% by 2011, after below-market leases on about half of the Eastdil. space expire. The building was constructed in 1929 and over- —Deka Immobilien Investment paid $82.9 million last month hauled in 1997. Cassidy & Pinkard/Colliers is brokering the for the 207,000-sf BAC Colonnade Tower in Coral Gables. deal for a vehicle managed by Boston-based AEW Capital Broker: Eastdil. Management. —A tenant-in-common vehicle operated by Grubb & Ellis Realty Investors has agreed to buy the 201,000-sf One Live Student-Housing Property Oak property in Atlanta for an unknown amount. Broker: DTZ Rockwood. An unidentified Australian investor agreed to buy the 207- —Granite Properties bought the 598,000-sf Spectrum Center unit Illini Tower student-housing property in Urbana, Ill., for in the Dallas suburb of Addison for $80 million in April. slightly more than $60 million from Walton Street Capital of Broker: HFF. Chicago. The 725-bed property, which hit the market in Meanwhile, Morgan Stanley has yet to find a buyer for some January, was originally expected to trade for about $70 mil- 600,000 sf of Denver-area space, which has been on the block lion. The property is fully leased for the coming school year. for roughly six months. O CB Richard Ellis was the broker. O July 16, 2008 Real Estate ALERT 11

INVESTMENT VEHICLES

Westbrook Nears Completion of Fund 8 look at properties, such as apartment complexes once slated for conversion to condominiums, that were assumed by Westbrook Partners is on track to close its latest value- lenders or are being offered by distressed owners. Some capi- added fund next month with the maximum equity level of tal might also be earmarked for redevelopment. Steven Wolf is $2.5 billion, according to investors. New York-based the fund’s managing partner. Fund 7 is the largest in the series, Westbrook, which declined to comment, began the marketing which was begun by Lend Lease Real Estate Investments in campaign about eight months ago. The vehicle, Westbrook 1993. Apollo bought the management rights to Funds 2 to 5 in Real Estate Fund 8, is seeking a 15%-plus return by investing 2004. in undervalued assets and portfolios, corporate and govern- ment divestitures, and properties with undercapitalized or Asia Fund Wrapping Up distressed ownership. About 40% of its equity will be deployed in the U.S., with the rest split between Europe and Alpha Investment Partners has essentially completed the Japan. marketing campaign for its latest fund, according to market players. The value-added vehicle, Alpha Asia Macro Trends Cornerstone Lands Commitment Fund, had a $1.5 billion equity goal, but it’s unclear if that amount was raised. Alpha, a unit of Keppel Land of Singapore, San Diego County Employees committed $25 million of declined to comment. The company will seek a 14-16% return equity to a value-added fund being marketed by Cornerstone through property acquisition and development in Asia. Alpha Real Estate Advisors, a Hartford unit of Massachusetts Mutual will consider single-family-home development, retail and Life. Townsend Group assisted the $8.9 billion-asset pension tourism-related properties, and office buildings suitable for system. The vehicle, Cornerstone Apartment Venture 3, has a multi-national corporations. Managing director Chin Hua Loh $400 million equity goal. It will seek a 14% return by acquiring oversees the fund. O properties suitable for redevelopment or expansion in markets with high barriers to entry.

Wisconsin Backs Lone Star Fund 6 Wisconsin Investment committed $100 million of equity to Lone Star Funds for its latest high-yield-debt fund. Lone Star is seeking to raise $5 billion for the vehicle, Lone Star Fund 6, which will target a 20% return by investing in corporate bonds, secured debt, bridge loans and mezzanine loans. It will also buy equity stakes in real estate companies, including those that are distressed. The fund will invest worldwide, with a focus on the U.S., Japan, Germany and France. The $87.8 billion-asset Wisconsin system was assisted on its investment by Courtland Partners.

Apollo Closes Value Enhancement Fund 7 Apollo Real Estate Advisors raised $758 million of equity for Apollo Value Enhancement Fund 7, well above the $600 mil- lion equity target. The fund is shooting for a 14% return by acquiring properties or portfolios nationwide that are under- performing or can be repositioned. Sellers could include liqui- For more information about speaking on dating entities, corporations and institutions. Apollo will also or sponsoring this event, please contact: Eliot Jacobowitz, Event Director [email protected] @ g

Need to see the largest property sales that were FOR MORE INFORMATION, PLEASE VISIT: completed recently? Go to The Marketplace section of www.imn.org/remergers/hspream REAlert.com and click on “Sales Activity.” It’s free. IMN ~ Call: +1 212/768-2800 ~ Fax: +1 212/768-2484 ~ Email: [email protected] July 16, 2008 Real Estate ALERT 12

responsible for acquisitions and for ed to appeal to value-added investors, THE GRAPEVINE increasing the value of office holdings in also features under-utilized retail space the Western U.S. CB recently raised $2.1 fronting the Magnificent Mile. ... From Page 1 billion of equity for core-plus and value- is now overseeing acquisitions for the added funds. Dahlman spent the past Toby Cobb, co-head of U.S. real estate at company. four years as leasing director of McCarthy Deutsche Bank, is shifting over to affiliate Cook & Co. of El Segundo, Calif. He pre- RREEF to work on a debt fund. RREEF Fund shop Westbrook Partners has hired viously worked at Los Angeles-based started raising $400 million of equity for Elaine Philips as a director. She will assist CommonWealth Partners and Cushman the vehicle, RREEF Structured Debt managing principal Mary Hull with Realty. Fund, more than 18 months again but investor relations and equity placement. has made slow progress. Cobb’s exact Philips held similar responsibilities at her BlackRock Realty Advisors is recruiting duties at the fund are not known. He most-recent job, with fund shop Ceres an asset manager in Newport Beach, joined Deutsche in 2002 after stints in Urban Investors. She remains based in Calif. The staffer will help oversee invest- the commercial mortgage-backed securi- New York. Westbrook is wrapping up ment strategies for a mix of property ties groups of Donaldson, Lufkin & equity raising for its eighth fund, a $2.5 types and assist with dispositions and Jenrette and Citicorp. billion value-added vehicle. acquisitions. Five years of experience is required. A. Brooks Properties is close to picking Alexandra Hill has joined Blackstone a buyer for an upscale 25,000-sf retail Group as a principal after a three-year Several brokerages are competing for the property at 801 Boylston Street in stint at fund shop Colony Capital, where listing of Tribune Tower in Chicago. Real Boston’s Back Bay section. The proper- she was assistant general counsel. Hill estate magnate Sam Zell, the owner of ty, which also includes some office will assist with investor relations and Tribune Co., is meeting with brokers this space, is expected to trade for a whop- equity raising for Blackstone’s real week. The 940,000-sf building could ping $1,000/sf, or $25 million. The typ- estate funds, working with managing fetch about $178 million, or $190/sf. An ical buyers of high-end retail space, director Mike Casey. She remains based adjacent development parcel is valued at such as Anglo-Irish Bank and Ponte in New York. about $50 million. Tribune Co. presum- Gadea, appear to be in the mix. ably plans to lease back the building’s Cushman & Wakefield is representing Darren Dahlman has joined CB Richard office space, but is willing to consider all Brooks, which is led by Irish developer Ellis Investors as a senior director. He is options. Tribune Tower, which is expect- Aidan Brooks.

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